ITMG 2013 net profit plunges by 46.6%

IDX-listed coal miner PT Indo Tambangraya Megah Tbk (ITMG) saw its 2013 net profit plunged by 46.6 percent to US$230.48 million from the figure in 2012 due to falling prices, according to the company?s financial report released Thursday.

Net sales fell by 10.6 percent to $2.17 billion as average selling price weakened by 17 percent to $74.95 per ton. Production increased slightly to 28.55 million tons from 27.61 million tons.

To help counter this external pressure, ITMG said it actively adjusted mine plans to increase production efficiency and reduce cost. ?The result is a satisfactory increase in coal sale by 7 percent to 29.21 million tons whereas cost of sales reduced by 6 percent to $48.17 per ton,? it said.

Cost reduction was achieved through changes in mine plan by the lower stripping ratios at Indominco, Trubaindo and Bharinto which reduced average stripping ratio to 11.06 times compared to 12.28 times in 2012. Cost reduction program was also emphasized in coal handling and port management to minimize energy cost, streamline coal flows from mines to ports, and improve shipment scheduling to reduce port demurrage, the company explained.

Editing by Reiner Simanjuntak